Funding for new inventions sounds like something out of a work of fiction. Although the word “invention” brings to mind days of old, there are some incredible inventors out there that just need a little funding to go the distance. Are you one of them?
If you have a remarkable idea or concept, don’t get discouraged and believe you have nowhere to go with it. Funding for new inventions is out there. Here’s what you need to know about angel inventor funding.
What Is an Angel Investor?
An angel investor is someone interested in funding a startup to help them reach certain milestones. The goal is to give them a big enough boost to either become self-sufficient financially or get them far enough along in the development process that they can secure additional funding.
The difference between angels and other types of investors is their personal investment in the project. They don’t want to give you money and hope for the best. They will often take part ownership of your idea and related developments in exchange for funding and will offer mentorship and guidance in your management and operations. This can be invaluable to an inventor who has an incredible concept but no experience when it comes to getting it from the idea phase to the marketplace.
What Do I Need to Attract an Angel Investor?
You must know what you need before you seek funding for new inventions. There are some ways you can prepare for approaching an angel investment firm with your idea.
The first thing you need to know is where you are in the timeline of your invention. Where will the money go? If you’re still in the concept stage, you could need funding for development and design. If you’re in the design phase, you might need financing of a prototype. If you already have the prototype, you might need money for manufacturing. You must communicate where you are to a potential investor when looking for funding for new inventions.
The second thing you need to prepare is proof of need. This is where you clearly explain how your invention fits in the marketplace. You should be able to provide information that will show who needs what you created and why. The investor needs a sense of the potential for success; they want to be sure it’s worth their time and that they will get a reasonable return on their investment.
Finally, you need to have a plan. You may not be a marketing expert, but you should have a clear sense of who your potential customers are and how you are going to market your product to them. What is the benefit for your target market, and how do you intend to get your product to them? Understanding this, as well as having realistic financial projections is critical to attracting the funding for new inventions you want and need.
Being an inventor can be fulfilling and rewarding, but it can also be frustrating and disheartening. Don’t let your ideas flounder and fail; get the right funding to take them to the next level. Funding for new inventions is out there. Find out if the angels at Activation Investments are the right partners for you.
Tags: Finding Funding for My Invention, Funding for Invention Ideas, New Invention Funding
Categorised in: Angel Invention FundingJanuary 18, 2017 9:09 am